EURJPY tests strong bullish trend line


Sentiment worsened on Friday, and it seems the bullish trend on this FX cross might soon come to an end. During the US session, the cross was trading half a percent weaker at around 124.80, testing the essential medium-term uptrend line.

Thus, the primary support for the price seems to be near this level, and if the price closes below this uptrend line on a daily chart, we might see a deeper correction.

The next target for bears could be at 124.50, and if this support is broken as well, the price might decline to 124 or possibly toward 123.

Much will depend on how the US stocks will trade shortly - but they certainly look ready for a correction too. 

Alternatively, should the cross start rallying again, the resistance is spotted near 125 and afterwards at the current cycle highs, which are near 125.50. The price needs to rise above this resistance in order to confirm the medium-term uptrend. 
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